DIGITALIZATION CHALLEI{GE S OF SN&A.LL ENTERPRTSE S IN BATTICALOA DISTRICT

Abstract

Small enterprises are one o,f the imporfant factors in the economic development of Sri Lanka, But those small enterprises are facing many digitalization challenges in tliis digital environment by the introduction of digital technology. And Digitalization is a big concept that is involving in all the modern activities that is carried by the several Small enterprises all over the world. Even though in the adoption of digitalization of small enterprises are challengeable in many ways. Thus, regarding the identification of digitalization challenges" this study is connecting the different t)?es of small enterprises in different DS division in Batticaloa district. Hence, aims of this study to explore the nature of Digitalization of small enterprises. the determining factors of Digitaiization in small enterprises, Identifuing and how the challenges influencing in digitalization of small enterprises and the possible recommendations and suggestions for small enterprises to face the digitalization challenges effectively. To find out the digitaiization challenges of small enterprises the survey was caried out among 30 small enterprises in Batticaloa district who were interviewed using a semi-stmctured intenielv lxethod. It is an inductive study r.vhere the qualitative approach was undefiaken equally 3 small enterprises each in l0 DS Division in Batticaloa district. Collected data were analyzed using NVivo 10 through thematic analysis. According to the findings, Digiralization is challenging in several ways in small enteqprises. As it was elaborated a positive relationship is built among the small enterprises and customers. Further, the factors such as the social media, mobile apps and software, intemet, electronic banking" cost" time efficiency, and technological knowledge were considered as supporting factors which indeed influence Digitalization of small enterprises, At the same time, the researcher found how the challenges influenced in the small enterprises and finally, the researcher recommended some strategies and mechanisms for the policymakers to enhance the Digitalization by taking proper action to face the challenges of small enterprises in Batticaloa district.